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Exam 15: Creditors Rights and Bankruptcy

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Question 41

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Charise files a petition in bankruptcy in a liquidation proceeding.If the court administers the means test and concludes that Charise is abusing the bankruptcy process by filing for a liquidation,most likely

A) Charise will be forced to file for relief through an individual repayment plan.
B) the court will discharge Charise's debts.
C) the court will distribute Charise's property to her creditors.
D) the court will issue an automatic stay against any actions by Charise's creditors.

E) A) and D)
F) C) and D)

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Question 42

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One goal of bankruptcy law is to ensure equitable treatment of creditors who are competing for a debtor's assets

A) True
B) False

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Question 43

Multiple Choice

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Vito borrows $110,000 from Watershed Bank to buy a home.If he fails to make payments on the mortgage,the bank has the right to repossess and auction off the property securing the loan.This is

Paxton agrees to pay QuikChek Lenders a debt that is otherwise dis-chargeable in bankruptcy.This is

To adjust debt and institute a repayment plan,Bianca-who is not a corpo-ration,a partnership,or a family farmer or fisherman-may file a peti-tion in bankruptcy for relief through

Roland files a petition in bankruptcy.After all his assets have been sold and the proceeds distributed among his creditors,Roland's remaining debts

Personal property that is most often exempt from satisfaction of judgment debts does not include equipment that the debtor uses in a business or trade.

The means test forces more people to file for Chapter 7 bankruptcy rather than gave their debts discharged under Chapter 13.

Fleet Trucking,LLC,buys a white van from Go Motors,Inc.,on credit under a guaranty signed by Herbie,Fleet's president,making him personally liable if the company does not pay.Herbie is

Big Data Enterprises borrows $10,000 from Creditworthy Loans,Inc.,but cannot repay the loan when it comes due.Creditworthy refuses to extend the time for repayment unless Big Data can provide an acceptable surety.Dependable Capital,LLC,agrees to act as a surety for the loan after Big Data offers Dependable a stake in the company and shows Dependable financial statements,compiled with Creditworthy's assistance,that misrepresent Big Data's financial situation.Later,Big Data again defaults on repayment of the loan,and Creditworthy files a suit against Dependable to collect the amount of the debt.Is Dependable liable? Why or why not?

Philo files a petition in bankruptcy for relief through an individual's repayment plan.He is granted a discharge.Generally,all debts are dischargeable except

Denise borrows $90,000 from Clear Lake Credit Union to buy a home.Denise loses her job and fails to make payments on the mortgage,but assures Clear Lake Credit that she will soon secure a new job.The lender agrees to postpone the payments.This is